The Central Bank of Nigeria (CBN) has decided to maintain its benchmark interest rate at 27.5%, marking the first pause in its policy rate tightening cycle since May 2022.

This decision was driven by the CBN’s optimistic inflation outlook, which is supported by the appreciation of the naira and the reduction in PMS prices.

The Monetary Policy Committee (MPC) voted to keep the Monetary Policy Rate (MPR) constant at 27.5% and retain all other parameters, including the Cash Reserve Requirement (CRR) and the liquidity ratio.

The committee anticipates robust GDP growth in the medium term, driven by strong contributions from the non-oil sector .

The CBN governor stressed the need for further inflation data to confirm a sustained moderation, reaffirming the MPC’s commitment to orthodox monetary tools to drive inflation toward minimal levels over the medium to long term.

While a potential rate cut could be considered at the May policy meeting, a gradual approach is anticipated to balance exchange rate stability with the anticipated disinflationary process .